SYLLABUS

GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

GS-3: Issues related to direct and indirect farm subsidies and minimum support prices.

Context: The government has allocated ₹7,200 crore to PM-AASHA for 2026–27, up from ₹6,941.36 crore in 2025–26, to strengthen price-support interventions and ensure remunerative prices for farmers.

About the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)

• PM-AASHA was launched in September 2018 to ensure remunerative prices for farmers, strengthen Minimum Support Price (MSP) implementation and reduce distress sales, while maintaining price stability for consumers.

• It brings together four mechanisms: Price Support Scheme (PSS), Price Stabilization Fund (PSF), Price Deficiency Payment Scheme (PDPS) and Market Intervention Scheme (MIS), depending on the crop and market conditions.

• The actual expenditure was ₹5,437.99 crore in 2024–25, while the allocation increased from ₹6,941.36 crore in 2025–26 to ₹7,200 crore in 2026–27.

Key Components of PM-AASHA

• Price Support Scheme (PSS): Under PSS, the government procures pulses, oilseeds and copra at MSP when market prices fall below MSP during the peak harvesting period, on the request of the concerned State/UT Government. 

• Procurement is undertaken by NAFED and NCCF through State agencies, directly from pre-registered farmers with valid land records and prescribed Fair Average Quality (FAQ) standards.
• From 2024–25, procurement is initially allowed up to 25% of State/UT production, with additional procurement possible up to 25% of national production with approval of the Committee of Secretaries. 
• For Tur, Urad and Masur, procurement is permitted up to 100% of State production to promote domestic pulse production and reduce import dependence.

• Price Stabilization Fund (PSF): PSF protects consumers from price volatility by procuring commodities such as Tur, Urad, Chana, Moong, Masur and onion during harvest to build buffer stocks. 

• These stocks are released in a calibrated manner during low supply or rising prices to control price spikes; PSF is merged with PM-AASHA but remains managed by the Department of Consumer Affairs.

• Price Deficiency Payment Scheme (PDPS): Under PDPS, farmers do not physically sell their produce to a government agency; instead, they receive the difference between MSP and the actual market price in a notified market, up to 15% of the MSP value. 

• The payment goes directly to their bank accounts, and the scheme is mainly used for oilseeds, reducing the need for large-scale physical procurement and storage.

• Market Intervention Scheme (MIS): MIS covers perishable agricultural and horticultural commodities without MSP, such as tomatoes, onions and potatoes. 

• It is activated when prices fall by at least 10% from normal previous-season rates, with operations through NAFED/NCCF and costs shared by the Centre and States, particularly during glut situations.

Need and Significance of PM-AASHA

• Reduces distress sales: PSS provides procurement at MSP when market prices fall below MSP, while PDPS provides price-difference payments without physical procurement.

• Promotes pulse self-sufficiency: Procurement of Tur, Urad and Masur up to 100% of State production encourages domestic pulse cultivation and reduces import dependence.

• Balances farmer and consumer interests: PSS and PDPS support farmers, while PSF and MIS help control price spikes and crashes, benefiting both farmers and consumers.

• Improves transparency and market access: Aadhaar/biometric authentication, e-Samriddhi, e-Samyukti and e-NAM strengthen digital procurement, with e-NAM covering 1,656 mandis, ₹4,94,847 crore trade, 4,776 FPOs and 7,334 FPOs on ONDC. 

• Strengthens infrastructure and grassroots procurement: AIF, 50,249 warehouses (992.6 lakh MT) and 25,081 marketing projects, along with PACS/FPO-based procurement in Bihar and Chhattisgarh, strengthen farm-to-market connectivity.

Challenges/ Hurdles

• Limited procurement coverage: Procurement remains concentrated in certain crops and regions, limiting MSP benefits for many farmers.

• Infrastructure and market-access gaps: Farmers, especially in remote areas, may face difficulties accessing procurement centres, warehouses and organised markets.

• Implementation challenges: Pre-registration, land-record verification, FAQ requirements, biometric authentication and coordination among agencies can create operational bottlenecks.

• Fiscal and logistical burden: Physical procurement, storage and market intervention require substantial fiscal and logistical resources while balancing farmer price assurance with consumer affordability.